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Natixis released its Q4 20 numbers yesterday evening, but that was only a small detail in the light of the offer its main shareholder (BPCE) is planning to make on the 30% stake it does not own in the company, at a price of €4. This is well below the €19 IPO price but optimists will say it is well above the September 2020 price. However, this should not mask the erratic strategies of successive managements and is a stark reminder to any minorities.
Natixis confirmed yesterday that it had found an agreement with H2O’s management to sell to it its own stakes (50.01%).
This was expected following the Q3 20 announcements that Natixis was looking to sell the asset manager that has been causing much trouble to the whole group. No price has been mentioned but it should be very symbolic and is not a key point as Natixis is only looking at getting rid of the asset manager (it should free up a small amount of capital).
Natixis released yesterday its numbers for Q3 20. P&L numbers were mostly resilient as revenues were above expectations, while total expenses and loan losses were roughly in line with expectations. The most relevant news was about the future of asset manager H2O which is 50.01% owned by Natixis.
An article in the French newspaper Les Echos yesterday helped Natixis’ share price to outperform the banking sector (+7% vs +1% for the sector even if the share price is still down 53% ytd vs 40% for the sector).
Some options regarding the future of Natixis are indeed being explored. This has been a recurring issue for some months now.
The H2O saga is continuing with another series of negative news regarding the faith of the illiquid bonds H2O has in its portfolio and which are linked to (controversial) German financier Windhorst.
It looks, in the end, as if the asset manager never really managed to sell these bonds but may have used a complex montage with suspicious brokers.
Natixis released its Q2 20 numbers. The top line was rather disappointing due to losses in the equity division (CIB) offset, however, by good cost controls. Loan losses were in line with expectations and guidance for FY2020’s total loan losses is unchanged.
The most important news from this release is the “departure” of CEO François Riahi after only two years. He is replaced by Nicolas Namias (BPCE’s head of group finance and strategy and Natixis’ former CFO).
Natixis is down about 5% following an article in the FT regarding the endless H2O matter.
According to the FT, the UK’s financial regulator, the FCA, is probing H2O over the Windhorst bonds. As a reminder, a year ago, the FT already unveiled the high exposure of H2O to Lars Windhorst’s companies via some illiquid bonds. Lars Windhorst is a controversial German financier.
Natixis released its numbers for Q1 20. As expected these were mostly impacted by a sharp increase in loan losses and trading income has suffered from market dislocation at the end of March. Cost of risk is at 117bp on an annualised basis vs 60-65bp for the three other French banks but still slightly higher expectations.
The CET1 ratio at 11.4% is 10bp higher qoq and 310bp higher than regulatory requirements (which have been recently softened).
After a strong opening (like other banks), Natixis is down about 8-9% due more negative news from H2O. The market has already been slashing its estimates on Natixis and its IM division due to falling financial markets (and the immediate impact on the AuMs and management fees). H2O has been a specific issue for one year and with “dangerous relations” between the AM and controversial investor Lars Windhorst. A sharp drop in H2O’s flagship funds will therefore add to the turmoil.
Natixis released its numbers for Q419. Top line growth was solid vs. expectations at a time when costs were strongly under control in the two main divisions (CIB and A&WM).
CET1 ratio at 11.3% was 10bps above the 2020 CET1 ratio target but 20bps lower QoQ. DPS at 0.31€ was in line with expectations however (>80% pay-out ratio).
Natixis released its numbers for Q3 19. Gross operating profit was 7.6% higher than expected (+2.2% vs our own expectations), mainly driven by the Asset and wealth management division. The CET1 ratio at 11.5% was flat qoq. Management is now targeting a CET1 ratio of 11.2% by end-2020 (vs 11% previously) through a decrease in Natixis’ 2018–20 budget (minimum payout ratio of 60% is unchanged however).
Natixis released this afternoon its numbers for Q2 19. Net revenues were above expectations, mainly driven by the wealth and asset management division. With costs under control, the gross operating income is 16% higher than expected. H2O, which has been under radar for three months (investment in illiquid assets mainly focused on German financier Lars Windhorst), recorded positive inflows in July (total €-6bn for Q2 19).
Natixis is down about 6% today (Stoxx600 banks is down 0.7%). This follows the _FT_’s article on Tuesday regarding one of Natixis’ flagship asset managers (H2O).
Natixis released this afternoon its numbers for 2018 and Q4 18.
As we are now used to in all Natixis’ earnings release, both P&L numbers and capital were more than decent.
Total revenues at €2.25bn were 5.5% above expectations and 4.2% higher yoy (adjusted for the €259m loss on Asian equity derivatives already announced in December 2018). Better than expected numbers in the flagship AM division contributed to these numbers.
Total expenses were 3% higher than expected and 2% higher yoy. Profit
On Tuesday evening (18 December), Natixis disclosed it is expecting a 10% decrease in Q4 18 revenues due to unexpected one-off losses amounting to about €260m (about €180m post-tax).
Its share price was down about 6% yesterday as the market was digesting the news. Losses represent indeed about 1.5% of the total market capitalisation.
Given the current market conditions, investors are more comfortable with demanding a higher risk premium to compensate for more potential unexpected losses to com
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H&T Group (‘H&T’), the UK’s leading pawnbroking business, has issued a positive trading update covering the year to 31 December 2021. The pledge book has increased by much more than expected during H2 as demand for pawnbroking loans increased sharply through November and December. Retail sales are also back above pre-pandemic levels in H2 and ahead of plan, with performance elsewhere in-line. Profitability is said to be within market expectations and would likely have been ahead had it not been
Companies: H&T Group plc
JOHN MENZIES+ (MNZS, BUY at 315p) – Note Publication: Evolutionary trends…
MARKS & SPENCER+ (MKS, HOUSE STOCK at 253p) Q3 TS – FY22 guidance firmed up, c5% underlying upgrade
NORTHBRIDGE INDUSTRIAL SERVICES+ (NBI, House Stock at 174p) - Further progress in Tasman disposal
BUNZL^ (BNZL, BUY at 2723p) – Note published: Solid strategic outlook
TESCO^ (TSCO, BUY at 292p) Q3 & Christmas TS – a beat to expectations and so further FY22 upgrades (c5%)
HILTON FOOD G
Companies: IDEA BRK ASC PFG MAB HFG TSCO BNZL NBI MKS MNZS
City of London Investment Group’s interims trading update reveals solid investment performance in difficult markets, encouraging net inflows and strong balance sheet. Key points include:
Companies: City of London Investment Group PLC
Companies: Ramsdens Holdings PLC
Companies: Plus500 Ltd.
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What’s cooking in the IPO kitchen?
Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector, intends to float on AIM. Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operations to supply labour to the northern section of the HS2 rail project
Companies: WSG ADME AGL CCT EMAN OHG OTMP TLY
Companies: NewRiver REIT plc
In December, Trident, the diversified royalty and streaming company, announced that it had agreed to purchase a package of gold offtake contracts from Orion Mine Finance (“Orion”) covering seven producing mines (combined attributable output of c. 600koz p.a. expected over the next five years) in six different countries. The transaction closed today following satisfaction of conditions precedent.
Total consideration was US$69.75m of which US$9.75m was scrip. The transaction is the company's la
Companies: Trident Royalties Plc
Companies: Alpha FX Group Plc
Yet again, Liontrust has delivered impressive AuM growth: +4.4% to £37.2bn Q3 (vs SCMe £36.8bn) with £832m net inflows. Despite uncertainty, AuM growth continued – particularly in Sustainable Investments which had an exceptional quarter (+£1.3bn AuM). Other strategies were more muted, but not materially impacted. Recently, more highly-rated quality stocks have underperformed the benchmark eroding AuM to £36.0bn (at 14/1) whilst net inflows have been sustained. We leave earnings forecasts unchang
Companies: Liontrust Asset Management PLC
Companies: Real Estate Credit Investments Limited
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.
SuperSeed Capital Limited
Companies: RQIH ABDP ACRL HAYD IQG
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Sumo Group has left AIM following a takeover.
What’s cooking in the IPO kitchen?
Unbound Group PLC, (currently called Electra Private Equity PLC) to join AIM. Unbound Group, will be the parent company for a range of brands focused on the 55 plus demographic. Initially focused on Hotter Shoes, Unbound's curated, multi-brand retail platform will offer additional products and services that will enhance the enjoyment and wellbeing of its targeted customer communit
Companies: TENG PLUS EVG CHAR CCS BARK
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Universe Group has left AIM following a takeover by Inform Information Systems Limited
What’s cooking in the IPO kitchen?
Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector, intends to float on AIM. Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operati
Companies: SPA AREC BBSN CCS EPWN GETB MRL ORPH PEN
Marlowe has raised £131m through a share placing to fund the earnings enhancing acquisition of Optima Health, which will position Marlowe as the clear market leader in the fragmented UK occupational health industry (9% market share). Marlowe is paying 9.6x expected 2022 synergised EBITDA for the business, which we believe represents an attractive multiple, given the target's strong organic growth rates (12% revenue CAGR over the past two years), sticky customer base (9-year average relationship
Companies: Marlowe Plc